unit 1 <3 Flashcards
What is enterprise?
Willingness to take risks and show initiative.
Give 5 skills needed to be an entrepreneur?
Presentation, willingness to take risks, leadership, communication, teamwork, technical skills, can do attitude, identifying opportunities, show initiative, drive and determination.
Roles of a business?
To produce goods or services, to meet customer needs and to add value.
Difference between a good and a service?
A good is tangible, and a service is intangible.
What is a risk and financial reward for starting a business?
Risk: They risk loosing money they invested in the setting up of the business.
Reward: If the business does well, they will gain financial reward in the form of profit.
Risks of an entrepreneur?
Risk of business failure: cash flow issues, increased costs, a fall in demand.
Financial loss: loosing money, savings, possessions, your house.
Lack of security: no regular income, no wage or salary making it hard to plan.
Rewards for an entrepreneur?
- Financial reward is the most important
- Being your own boss and making all the decisions
- Freedom to be creative
- Satisfaction of running your own business
- Provide something valuable to society
- Providing employment for others
- Flexibility
Ways to minimum risk?
- Market research: finding out information from existing or potential customers
- Reviewing sales revenue and profit figures
- Research the competition
- Keeping track of the state of economy
Definition of adding value?
The increase worth that a business creates for a product.
What’s an entrepreneur?
Someone who has a flair for a business idea, and has the confidence to take the risks involved in setting up a business.
Adding value could be calculated as?
The difference between the price and the cost.
What’s the difference between price and cost?
The price is what a customer pays and the cost is what the business pays.
Methods of adding value?
Branding, product features, convenience, excellent customer service, high quality.
In order to remain competitive a business must..?
identify what customers want and adapt to meet changing customers needs.
What is E-commerce?
Conducting business on the internet (buying/selling on the internet)
